8 Colo. Code Regs. § 1403-1-3.147

Current through Register Vol. 48, No. 1, January 10, 2025

Section 8 CCR 1403-1-3.147 - RECOVERY PROCESS

A. When is the county determines that an overpayment has occurred, the counties or their designee shall:

1. Document the facts and situation that produced the overpayment and retain this documentation until the overpayment is paid in full or for three (3) years plus the current year, whichever is longer.

2. Determine what benefits the household was eligible for and recover benefits for which the household was found to be ineligible, except in the case of willful misrepresentation or withholding of information.

3. Determine the payments for which the child care provider was not eligible and recover those payments.

4. Initiate timely written notice allowing for the fifteen (15) calendar day noticing period. Such notice shall include a complete explanation, including applicable rules, concerning the overpayment, recovery sought and appeal rights.

5. Take action to recover following the right of appeal and fair hearing process.

6. Pursue all legal remedies available to the county in order to recover the overpayment. Legal remedies include, but are not limited to:

a. Judgments;

b. Garnishments;

c. Claims on estates; and

d. The state income tax refund intercepts process.

7. In accordance with sections 26.5-4-119 and 39-21-108, C.R.S., the state and counties or their designees may recover overpayments of public assistance benefits through the offset (intercept) of a taxpayer's State Income Tax Refund.

a. This method may be used to recover overpayments that have been:

1) Determined by final agency action;

2) Ordered by a court as restitution; or

3) Reduced to judgment.

b. This offset (intercept) may include the current legal rate of interest on the total when fraud or intentional program violation has been determined. Offsets (intercepts) are applied to recoveries through use of a hierarchy. The hierarchy is:

1) Fraud recoveries, oldest to newest;

2) Court ordered recoveries, oldest to newest; and

3) Client error recoveries, oldest to newest.

B. Prior to certifying the taxpayer's name and other information to the Colorado Department of Revenue, the Department shall notify the taxpayer, in writing at their last-known address, that the Department intends to use the tax refund offset (intercept) to recover the overpayment. In addition to the requirements of section 26.5-4-119(2), C.R.S., the pre-offset (intercept) notice shall include the name of the counties claiming the overpayment, a reference to child care as the source of the overpayment, and the current balance owed. The taxpayer is entitled to object to the offset (intercept) by filing a request for a county dispute resolution conference or state hearing within thirty (30) calendar-days from the date that the pre-offset notice is mailed, faxed, emailed, sent via other electronic systems, or hand-delivered to the taxpayer. In all other respects, the procedures applicable to such hearings shall be those stated elsewhere in Colorado Department of Human Services rule sections 3.840 and 3.850, and incorporated by reference in rule section 3.109, above. At the hearing on the offset (intercept), the counties or their designee, or an Administrative Law Judge (ALJ), shall not consider whether an overpayment has occurred, but may consider the following issues if raised by the taxpayer in their request for a hearing. Whether:

1. The taxpayer was properly notified of the overpayment;

2. The taxpayer is the person who owes the overpayment;

3. The amount of the overpayment has been paid or is incorrect; or

4. The debt created by the overpayment has been discharged through bankruptcy.

8 CCR 1403-1-3.147

46 CR 21, November 10, 2023, effective 10/1/2023, exp. 1/27/2024 (Emergency)

46 CR 22, November 25, 2023, effective 12/15/2023

47 CR 13, July 10, 2024, effective 7/30/2024